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Registration number: 01223744

Prepared for the registrar

Industrial Sales Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 August 2023

 

Industrial Sales Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 9

 

Industrial Sales Limited

Company Information

Directors

J A Bailey

N R Bailey

M Bailey

C H Harvey

H N Bailey

Company secretary

H N Bailey

Registered office

Fern House
Daniels Industrial Estate
104 Bath Road
Stroud
Gloucestershire
GL5 3TJ

Accountants

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
Gl51 0UX

 

Industrial Sales Limited

(Registration number: 01223744)
Balance Sheet as at 31 August 2023

Note

2023
 £

2022
 £

Fixed assets

 

Tangible assets

4

15,895

15,895

Investment property

5

16,024,166

16,024,166

Investments

6

16,876

16,876

Other financial assets

7

477,604

-

 

16,534,541

16,056,937

Current assets

 

Debtors

8

78,738

151,911

Cash at bank and in hand

 

5,120,372

5,319,517

 

5,199,110

5,471,428

Creditors: Amounts falling due within one year

9

(4,838,119)

(5,002,016)

Net current assets

 

360,991

469,412

Total assets less current liabilities

 

16,895,532

16,526,349

Deferred tax liabilities

 

(252,056)

(250,741)

Net assets

 

16,643,476

16,275,608

Capital and reserves

 

Called up share capital

10,000

10,000

Capital reserve

1,454,000

1,454,000

Revaluation reserve

1,197,003

1,198,765

Profit and loss account

13,982,473

13,612,843

Total equity

 

16,643,476

16,275,608

For the financial year ending 31 August 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 17 February 2024 and signed on its behalf by:
 


M Bailey
Director

 

Industrial Sales Limited

Notes to the Financial Statements for the Year Ended 31 August 2023

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Fern House
Daniels Industrial Estate
104 Bath Road
Stroud
Gloucestershire
GL5 3TJ

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Group accounts not prepared

The financial statements contain information about Industrial Sales Limited as an individual company and do not contain consolidated financial information as the parent of a group.

The company is part of a small group. The company has taken advantage of the exemption provided by Section 399 (2A) of the Companies Act 2006 and has not prepared group accounts
.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

 

Industrial Sales Limited

Notes to the Financial Statements for the Year Ended 31 August 2023

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in the accounting policies.

Revenue recognition

Turnover represents amounts excluding value added tax receivable during the year for property rental. Rental lease incentives are spread over the period to the date of the next rent review or the lease term.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

20% of cost per annum

Motor vehicles

25% of cost per annum

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually, using observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Trade debtors

Trade debtors are amounts due from tenants in respect of property rental.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

 

Industrial Sales Limited

Notes to the Financial Statements for the Year Ended 31 August 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

Industrial Sales Limited

Notes to the Financial Statements for the Year Ended 31 August 2023

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

 

5

Investment properties

£

At 1 September 2022 & 31 August 2022

16,024,166

The fair value of the investment properties comprises of an external independent valuation undertaken on 31 August 2013 by Mr P J Pratt BSc MRICS of Alder King in the amount of £14,318,000 and subsequent additions at cost of £1,706,166. The directors do not consider the fair values at the balance sheet date to be significantly different from the amounts reported above. The historical cost of the investment properties is £14,589,707 (2022 - £14,589,707).

 

Industrial Sales Limited

Notes to the Financial Statements for the Year Ended 31 August 2023

 

6

Investments

2023
£

2022
£

Investments in subsidiaries

16,876

16,876

 

7

Other financial assets

Financial assets at fair value through profit and loss
£

Non-current financial assets

Cost or valuation

At 1 September 2022

-

Additions

482,284

Fair value movement

(4,680)

At 31 August 2023

477,604

Carrying amount

At 31 August 2023

477,604

At 31 August 2022

-

 

8

Debtors

2023
 £

2022
 £

Trade debtors

74,633

147,865

Other debtors

59

-

Prepayments

4,046

4,046

 

78,738

151,911

 

9

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

10

4,175,583

4,313,884

Trade creditors

 

11,895

11,334

Amounts due to related parties (subsidiaries)

 

15,014

15,014

Social security and other taxes

 

49,808

48,395

Other creditors

 

240,825

243,306

Accrued expenses and deferred income

 

210,094

213,921

Corporation tax liability

 

134,900

156,162

 

4,838,119

5,002,016

 

Industrial Sales Limited

Notes to the Financial Statements for the Year Ended 31 August 2023

 

10

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Other loans

4,175,583

4,313,884

 

11

Related party transactions

During the year, the company made the following related party transactions

Executive pension scheme in which the directors are trustees and members
During the year, rent was charged to the company of £48,552 (2022 - £48,552) and expenses of £3,290 (2022 - £1,644) were paid by the company on behalf of the pension scheme. At the balance sheet date, there were no outstanding amounts with the pension scheme.

Directors of the company
During the year, the company was charged interest of £136,201 (2022 - £126,606) on loans made to the company. Loan repayments of £430,463 (2022 - £511,767) were made by the company, with funds of £292,158 (2022 - £796,137) introduced into the company. The amounts due to the directors at the end of the year are not expected to be fully repaid within one year of the date of approval of the financial statements, although if such repayments were required the directors consider that, with the unencumbered value of the investment properties, that sufficient funding would be obtained to facilitate such repayments. At the balance sheet date, the amounts due to the directors was £3,505,580 (2022 - £3,643,884). Dividend payments to the directors amounted to £60,000 (2022 - £306,000).

Trusts in which the directors are trustees
During the year, the company was charged interest of £25,410 (2022 - £22,404) on loans made to the company. During the year funds of £nil (2022 - £60,000) was introduced into the company from these trusts. At the balance sheet date, the amounts due to these trusts was £670,003 (2022 - £670,000).

 

12

Financial instruments

Categorisation of financial instruments

2023
 £

2022
 £

Financial assets measured at fair value through profit or loss

477,604

-

Financial assets measured at fair value

Investment portfolio
Investments are included at fair value based on the price quoted on the relevant exchange or the net asset value provided by the fund investment manager.

The fair value is £477,604 (2022 - £nil) and the change in value included in profit or loss is £4,680 (2022 - £nil).

Items of income, expense, gains or losses

2023

Income
£

Expense
£

Net gains
£

Net losses
£

Financial assets measured at fair value through profit or loss

59

-

-

4,680

2022

Income
£

Expense
£

Net gains
£

Net losses
£

Financial assets measured at fair value through profit or loss

-

-

-

-

 

Industrial Sales Limited

Notes to the Financial Statements for the Year Ended 31 August 2023

 

13

Non adjusting events after the financial period

Subsequent to the year end the company sold investment property with a carrying value of £1,780,000 for total proceeds of £3,481,667.